The layoffs impacted Innovaccer’s employees across India and the US
Sources said the reason behind the layoffs was the healthtech unicorn’s transition to an AI company
Confirming the development, the startup said it is aligning its team to current business priorities
Healthtech unicorn Innovaccer fired 340 employees today in a restructuring exercise, sources told Inc42.
This is the startup’s third layoff round in the past four years. The layoffs impacted employees across teams in India and the US, the sources added. They said that the reason behind the layoffs was the startup’s transition to an AI company.
In an internal mail, Innovaccer
cofounder and CEO Abhinav Shashank said that the startup is transitioning into an AI-native company.
Confirming the development, the startup, in a statement, said, “As part of a global organisational change, Innovaccer is aligning its team to current business priorities. We are building an organisation that is lean, fast and focused, which prioritises speed and measurable outcomes for our customers. As a result, we are reducing the size of our team. The number of employees impacted globally are 340.”
The fresh development came almost five months after Innovaccer announced ₹600 Cr ESOP buyback for its employees.
Founded in 2014 by Shashank, Kanav Hasija and Sandeep Gupta, Innovaccer helps healthcare organisations streamline their data to improve patient care and operational performance. Its healthcare intelligence cloud and data activation platform integrate information from electronic health records, claims, financial and operational systems into a single source.
The California-headquartered startup counts CommonSpirit Health, Kaiser Permanente, and Banner Health, among its key customers.
Last year, Innovaccer raised $275 Mn in its Series F funding round from B Capital Group, Banner Health, Danaher Ventures LLC, Generation Investment Management, Kaiser Permanente, and M12 in a mix of primary and secondary capital.
Following that, Innovaccer doubled down on mergers and acquisition. It acquired AI-enabled specialty care startup Story Health to strengthen specialty care management in September 2025 and Humbi AI in January 2025 to add actuarial and contracting copilots.
Prior to that, the unicorn snapped up Cured (patient experience and CRM) and Pharmacy Quality Solutions (pharmacy performance) in 2024.
